The Denver short-term rental landscape is evolving at a rapid pace in 2025, creating both challenges and opportunities for property owners and investors. With the city’s tourism continuing to flourish and business travel rebounding to pre-pandemic levels, understanding the current market dynamics is essential for making informed decisions about your rental property.
As local property management experts serving Denver and the Colorado Foothills, we’ve had a front-row seat to the transformation of Denver’s vacation rental scene. From downtown lofts to cozy bungalows in historic neighborhoods, we’ve managed hundreds of properties and gained invaluable insights into what makes the Denver market unique.
The Mile High City has always had a distinctive rental market compared to other major metropolitan areas. Our proximity to world-class skiing, 300+ days of sunshine, and a thriving cultural scene creates year-round appeal that few destinations can match. A three-bedroom townhome in LoHi that we manage recently achieved 94% occupancy over a 12-month period, demonstrating the robust demand that continues to define our local market.
Current State of Denver’s Short-Term Rental Market
The Denver Airbnb and vacation rental market in 2025 can be characterized by several key metrics and trends:
Supply and Demand: Denver currently has approximately 4,200 active short-term rental listings across all platforms, representing a 15% increase from 2024. Despite this growth in inventory, demand has kept pace, with citywide occupancy rates averaging 72% year-round.
Revenue Performance: The average daily rate (ADR) for Denver short-term rentals stands at $187, up 8% from last year. Revenue per available room (RevPAR) has increased by 11%, outperforming many comparable markets like Salt Lake City and Minneapolis.
Neighborhood Performance: LoDo, RiNo, and Cherry Creek continue to command premium rates, with average nightly prices 23-30% higher than the city average. However, emerging neighborhoods like Sloan’s Lake, Berkeley, and Platt Park are seeing the fastest growth in both new listings and revenue performance.
Seasonality Patterns: Denver’s traditional summer peak season (June-August) remains strong, but shoulder seasons are narrowing. October has emerged as an increasingly valuable month for owners, with fall foliage and beer tourism driving surprising demand.
Key Market Influences in 2025
Several factors are currently shaping the Denver short-term rental marketplace:
Regulatory Environment: The city’s licensing requirements implemented in 2023 have stabilized, with compliance rates now exceeding 85%. The primary residence requirement remains in effect, though enforcement has focused mainly on multi-property operators rather than individual homeowners.
Economic Factors: Denver’s job market continues to expand, with particular growth in technology and healthcare sectors. This has supported a steady stream of business travelers and relocation visits, especially during traditionally slower periods.
Tourism Drivers: The expansion of direct international flights to Denver International Airport has broadened the guest demographic. European and Asian tourism has increased by 27% compared to 2024, bringing longer average stays and higher overall spending.
Real Estate Market: Denver’s residential real estate prices have increased 9% year-over-year, pushing more potential buyers into long-term rentals. This has reduced the available housing stock that might otherwise convert to short-term rentals, helping to maintain balance between supply and demand.
Emerging Trends to Watch
Looking ahead through 2025 and beyond, several trends are emerging that will impact property owners:
Extended Stays Are Growing: Bookings of 14+ nights now represent 24% of total Denver Airbnb reservations, up from 18% in 2024. Properties optimized for longer stays (with dedicated workspaces, full kitchens, and in-unit laundry) are commanding premium rates.
Amenity Expectations Have Evolved: High-speed internet is no longer a differentiator but a baseline expectation. Properties with outdoor spaces, pet-friendly policies, and smart home features are seeing 15-20% higher occupancy rates than comparable properties without these amenities.
Sustainability Matters: Listings highlighting energy-efficient features, recycling programs, and sustainable practices are performing notably better in search rankings and guest reviews. This trend is particularly pronounced among Denver’s younger and more environmentally conscious travelers.
Professionalization Continues: Amateur hosts are finding it increasingly difficult to compete with professionally managed properties. The gap in occupancy rates between self-managed and professionally managed listings has widened to approximately 12 percentage points in Denver’s competitive market.
Forecast for Different Property Types
Based on our market analysis, here’s how different property types are expected to perform through the remainder of 2025:
Urban Condos and Apartments: These continue to perform well for shorter stays, with one-bedroom units in central neighborhoods seeing the most consistent demand. However, they’re more vulnerable to new supply entering the market and typically experience more dramatic seasonal fluctuations.
Single-Family Homes: Particularly in neighborhoods with walkability to restaurants and attractions, single-family homes command the highest absolute rates and are proving increasingly popular for family travel and small group getaways. Properties in Washington Park, Highlands, and Congress Park are particularly strong performers.
Unique Properties: Distinctive listings like lofts, carriage houses, and properties with outstanding views or historic character continue to outperform standard accommodations. Their uniqueness provides some insulation from market fluctuations and competitive pressure.
Multi-Bedroom Rentals: Larger properties accommodating groups are seeing the strongest year-over-year growth in both occupancy and rate, especially those within 20 minutes of downtown. The return of conferences and events to the Colorado Convention Center has been a major driver of this demand.
Revenue Management Strategies for Denver Owners
Maximizing returns in the current market requires sophisticated revenue management. Here are strategies proving effective for Denver property owners:
Dynamic Pricing Refinement: Properties using algorithmic pricing tools with Denver-specific customizations are achieving 14-22% higher revenues than those with static pricing models. The market now requires day-of-week, seasonal, and event-based adjustments to optimize performance.
Minimum Stay Optimization: Strategic use of minimum stay requirements during high-demand periods is critical. Our data shows that implementing 3-night minimums during summer weekends and major events, while maintaining flexibility during shoulder seasons, maximizes overall revenue.
Cancelation Policy Balance: While strict cancelation policies protect revenue, they can reduce booking volume. Moderate policies are showing the best overall performance in Denver’s market, striking a balance between protection and booking conversion.
Multi-Platform Strategy: Properties listed on multiple platforms (Airbnb, VRBO, Booking.com, and direct booking channels) are seeing 18-25% higher occupancy rates than single-platform listings. However, rate parity and availability management become more complex with this approach.
Neighborhood Spotlight: Where to Invest
For those considering entering the Denver short-term rental market or expanding their portfolio, certain neighborhoods offer particularly promising opportunities:
RiNo (River North Art District): Still showing strong growth potential despite its maturity, with new restaurants and attractions continually enhancing its appeal. Properties here are achieving some of the highest RevPAR in the city.
South Broadway: This area is seeing rapidly increasing guest interest due to its eclectic shops, music venues, and proximity to downtown. Property values remain more accessible than in more established areas, offering better potential returns.
West Colfax: The ongoing redevelopment and proximity to Sloan’s Lake make this area increasingly attractive to guests seeking value combined with convenience. Early investors here are seeing strong year-over-year growth in both occupancy and rates.
Central Park (formerly Stapleton): While not traditionally a tourist hub, this neighborhood is performing exceptionally well for family travelers and those seeking longer stays, with excellent access to both downtown and the airport.
Challenges and Opportunities Ahead
No market analysis would be complete without acknowledging the challenges Denver property owners face:
Increasing Operating Costs: Cleaning, maintenance, and property management expenses have risen approximately 11% year-over-year, outpacing ADR growth in some segments. Efficiency in operations is becoming as important as revenue optimization.
Competitive Intensity: As more professionally managed properties enter the market, standing out requires greater attention to property presentation, guest experience, and marketing. Properties without distinctive features or professional management are seeing compression in their performance metrics.
Regulatory Uncertainty: While current regulations have stabilized, ongoing discussions at both city and state levels suggest the regulatory environment will continue to evolve. Staying informed and engaged with local short-term rental associations is becoming essential.
Despite these challenges, Denver’s fundamentals remain exceptionally strong for short-term rental investors. The combination of year-round tourism, business travel, and the city’s growing reputation as a destination in its own right continues to drive healthy returns for well-positioned properties.
Looking Forward
As we move through 2025, Denver’s short-term rental market shows no signs of slowing down. Property owners who approach their investments strategically—focusing on guest experience, operational efficiency, and data-driven decision-making—are positioned to thrive even as the market matures.
The most successful owners are treating their properties not just as passive investments but as micro-hospitality businesses, with attention to detail that matches or exceeds traditional accommodations. This professionalization trend will likely accelerate through 2025 and beyond.
For Denver property owners, the opportunity remains substantial. With thoughtful positioning, professional management, and strategic revenue optimization, short-term rentals continue to outperform traditional long-term leasing in most Denver neighborhoods.
Ready to maximize your Denver property’s potential in this dynamic market? Our team of local experts provides comprehensive analysis and management services tailored to Denver’s unique vacation rental landscape. Contact us today for a free rental analysis and discover how your property can perform in the current market.